MNB puts 2017, 2018 government deficits below target

Deals

Jessica Fejos

The National Bank of Hungary (MNB) projected the accrual-based ESA government deficit to drop to 1.8% of GDP this year and to 1.7% next year, both below the respective government targets, in its fresh quarterly Inflation Report published in full today, according to Hungarian news agency MTI.

The forecast for the 2016 deficit was lowered slightly and the 2017 forecast remained unchanged from the December report.  

The fresh report said that economic stimulus measures announced by the government – the family home purchase subsidy, road developments, the accelerated drawdown of EU funding – and falling interest spending will offset the deficit rise stemming from the need to supplement larger EU funds with larger budget funds.

Meanwhile, the primary ESA surplus is projected to drop from lastʼs 1.3% of GDP to 1.1% this year and 0.9% in 2017.

The MNB assumed that free budget reserves (the so-called Country Protection Fund) will be spent.

The MNB did not take into account government plans to draw a balanced central budget for 2017 when preparing the forecast.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.